Digicel’s merger with Claro reportedly faces a challenge by Jamaica’s Fair Trading Commission (FTC) after the supreme court struck down Digicel’s opposition to having the deal scrutinised.
FTC lead counsel Dr Delroy Beckford was quoted in the…
Digicel’s merger with Claro reportedly faces a challenge by Jamaica’s Fair Trading Commission (FTC) after the supreme court struck down Digicel’s opposition to having the deal scrutinised.
FTC lead counsel Dr Delroy Beckford was quoted in the Jamaica Observer saying that the merger could be reversed if the FTC can prove that the deal would substantially lessen competition.
Justice Almarie Sinclair-Haynes judged that the Fair Competition Act applies to the merger as Claro would be exiting Jamaica, according to the report. It was also decided that the FTC has jurisdiction over the transactions.
Digicel acquired Mexican telecoms giant America Movil’s Jamaican Claro unit in December last year as part of an asset swap. No financial details were released at the time.
